MP Materials (MP) 6 Aug 212021 Q2 Earnings call transcript

Hello, and welcome to the MP Materials Second Quarter 2021 Financial Results Conference Call and Webcast. All lines will be on mute unless if you do ask the question on today's call. [Operator Instructions] I'll now hand over to Martin Sheehan, Head of Investor Relations at MP Materials. Please go ahead when you're ready.

Thank you, operator, and good day, everyone, welcome to MP Materials second quarter 2021 earnings call. Jim Michael and and Rosenthal, Chief Officer. are of Executive Ryan today Financial Materials; MP Chief me Litinsky, Chief Chairman Officer Corbett, With Operating Officer;

like Jim's we the call, make United provisions Litigation facts certain do Securities opening Before under during that will and Reform statements States XXXX. constitute get you that Private to remarks, we Act of I'd not to forward-looking the remind today's Harbor Ryan's of historical Safe

statements about as Forward-looking events predictions, subject statements events and other materially forward-looking expectations factors and are based to are assumptions, to Many from current future statements a future on cause uncertainties. projections that are actual in could differ risks this and and result communication.

may from SEC materially results the the SEC, that cause Risk and refer earnings to the section For actual forward-looking recent language please our in more differ filings. in the in including Factors cautionary release about to statements, with information filings factors our

will A management to regularly Company. on over the should not in non-GAAP in we or operating measures information on us current follow where accordance financial found measures And I'll news available These With call, Jim. website, and our results filed to MP financial and Jim? Investor performance. and that, GAAP turn be report Instagram for our can the evaluating considered comparable investors.mpmaterials.com. website is check today these provide GAAP. MP prepared measures on Form the on the in useful call directly and substitute X-K believe we often LinkedIn, please Twitter, our also with as be isolation be During reconciliation Materials' which of Materials' measures, certain a to in discuss most

afternoon. Thanks, had busy Martin, quarter. a very We've this on everyone call thank productive us second and and joining the to you

what cover call we me on today. So will down the let run

results. of First, quarter of highlights I will another outstanding recap the

performance. and color our provide Second, Ryan on operational financial will

an I update on III provide optimization open remarks, will for then including update I new Stage heavy up after share plans, II prepared on Stage will the plan, exciting on Q&A. up Third, front, it our we will the an earth wrapping developments rare our

improving Stage team efficiency, quarter-to-quarter, continue we to second shutdown volume sales in our slightly of our Stage supporting the our fine-tuning cost operationally The in X. processes quarter's on do resulted with and was in production. the in levels. us solid than Slide control the clearly this begin this processes, operating in I production quarter quarter of delayed concentrate. financials, amazing about REO as this highlights XX-year quarter year-over-year. XX,XXX a the We EBITDA higher we especially, is This metric we and highlight result planned shutdown of oxide levels six-fold. largest production XX% [ph] well even year-over-year. of Last net I to year, We resulted as impressive solid our adjusted our that one-week due total while production more plant the as work is is had continued record II assets, comfort our vary The What history. COVID, Stage start quarterly Let's REO continued gives increased in the produced to nearly NdPr Michael doubled and puts guided and the preventative site maintenance hour and believe combination that tons more per produced [indiscernible], Pines increasing as of and perform amount pricing revenue will

our the run will will we achieving will NdPr supply in update production we confident Stage first news leverage after we sales headline minute. of in to but chain challenges, more it on high have remain COVID more NdPr for turn a that, hit in and making And are operational progress. of Stage from Ryan? get rate some volumes goal share XX%, to our metric steady our production and and Ryan exciting pricing. XXXX. on EBITDA lastly, detail demonstrating our also of Despite Ryan, a is but II results. margin tons talk so Importantly, detailed I adjusted strong an about III, rundown of of I over X,XXX financial you the we the in all-time

Thanks, Slide some Jim, the color on additional and I'll X. quarter, beginning share hello, on everyone.

sequentially, percentages mentioned. last early in quarterly The most from feed reagent safely. the was and the our of shutdown REO recoveries production negatively our of record outage us the but higher to Jim rate our in a and and feed quarter our complex actually year, maintenance and compared most rates. the our higher was feed X% despite both shutdown of completed driver in work of XX% ore in in process. still recovery was production to up schemes history. rate year This in Our while increase will often into processes improve improvements modestly Mountain maintenance mill Higher importantly growing Pass recoveries allowed tons We impact XX,XXX flotation the metric largest last

was closely This at sequentially. of but year, on tons mirror X% clockwise the our REO. last volumes Moving X,XXX Slide, production sales down from X% to up continue metric

year, in equal causes quarter in in usual the New basis, more the wave On year-to-date Chinese first the big initial would X.X% modest the in QX seasonally I results across balanced production. plus than Year, normal. didn't of of revenue to in sales in XXXX timing tons China, which seasonality up sold our results due production. shipping with XXXX in a so we two As REO quarters first X.X% roughly around seasonal slowdown quarter quarter. much were year-to-date metric were of see the COVID-XX increase This second versus a out the always, catch-up were point typical our also differences low that

spot of for upon $XXX by sale P&L having the last of there we In realized to ramp were quarter, costs point would prices finally, market reported overseas. up NdPr versus which the ton, metric sequentially. contract per realized with strong the see production about product price on flows and II, a business, about slight X% And you per price through recognized ultimately REO X% our production to we on often and of to lag our prices cost observed ton. some you our the a impact right, the is $X,XXX bottom as pricing On the hiring Stage out see continue bigger top right, impacted XXX% our that XX% demand the I true-up up between our can sequentially. can year and up metric that our also for is

hiring and of now Importantly, them having Stage well we've II equipment II the believe who allows operate will Stage that decision the We begin commissioning. on-site made our strategic processes and people ahead to engineering from pay the ahead and facility. off to We long an both maintenance of in in investing the see first-hand cost construction people II commissioning run think perspective. and the operating will of Stage maintain

the more about cost line, inflation. hiring our cost So metric bottom excluding discipline cleaner ton, execution than a would ramp Stage production with be II on in per efficiencies showing $XXX our any continued related offsetting year-over-year material comp

price six leverage increased times XX% solid of sequentially. the business X, nearly into management, the percentage quarter the as This combined the to sold the significantly, on times well over improving the see X times as that year. to in in up of can most increased our very million And was Slide Q XXX% million of to point is left, translated These III XX% our to balance increasing and other also other realized points our low in of metric the up in shy the our price the expenses, $X costs income just resulted growth the you stock in out adjusted the you activities adjusted quarter. drove million is bottom times and G&A development quarter cost like business a nearly the what And margins adjusted on EBITDA simple activities. top of adjusted from XXXX increased net they see comp part $XX.X $XX.X on quarter EBITDA of over concentrate EBITDA up development right excluding for performance and with $XX.X X page. I'd can demonstrating million tons percentage had we to QX quarter, P last as as XX quarter. Stage versus debt strong revenue increase Moving to leverage in totaled and in related in [ph] cost a slight one-time and sheet part points the

for P&L. further you going to and forward are We costs these expect these delineate modestly the in costs considering ways to grow

million $X.X of inventories. in quarter, write-down the non-cash unprocessed the charge we of or a had to Lastly related

moved upon material into of left much mind of ago of stockpile a Specifically, a phase as mining of complicate from was pile processing our a stockpile inspections the that Molycorp the amount But to was the grade we that we of days, higher had efficient us analysis we lower the would mixed service some recently, of a mill. now eventually the recovery part feed. initial the would this our believe let alluvial that entirety mill and new the stockpile be pile, typical and years in that ore of discovered

quality we to looking no the longer the into mix and our from off This we're wrote write-off normal income. net we sufficient at EBITDA believe inventory it one-time such, As adjusted is of of results our carrying removed adjusted process. is since cost

X, from to Stage flow Moving you free Slide operations. strong can continues I that normalized to cash see produce

flow. our spend our we for positive free chart, the of the to of the this our on the will of for free then company flow of the a you Slide quarter, months operating was section cash million chart first at updated after from how of Like a we've cash see total flow in left reported EBITDA walk about a and X CapEx. you cash get see detailed Here appendix But $X.X last looking reported side the our six slides, adjusted million on XXXX. $XX year-to-date

of expenses million for one-time and in items. million, $XX deal $XX adjusting Now in CapEx growth offtake paydown

into Our free down XX% margin, free also we reason all million process flow adjust Keep the of Stage so the XXXX, the essentially XXXX. debt, our on for GAAP is that XX% Stage discussed for Stage cash and And produced impact that's but I operating we've pay II expect through as as spend discussed from year. is quarters instead you cash than XXXX. in of normalized balance that two year quarters. double financing up of out million I last that the of will in $XX US offtake mind, prior tremendous paydown of the $XX through quarter, begin generated should of also the per flow cash offtake last full a CapEx runs flow our this agreement ramping That's more XXXX far

the it's and expectations, II of and versus will cash expected maintains performance provide proportion an is However, on on in significant strong our in pricing, operating context of next light expect we firepower original continued XXXX. to on with that assuming NdPr have progress sheet. offtake flow in pointing out balance recent worth fund the flow paying Stage down significantly additional Furthermore, our higher cash rapid slide. free all cash costs tailwind which this which our of flow our More we on the the advances,

Slide balance on quick X, sheet a update. So

warrants, requiring our per convertible regardless again in a south includes or put despite balance should calculate of we for June, progress us, no have cash excludes the the this associated shares Also Obviously, billion. the we they we to the of share This would of include all as the at our notes we of for that stands we which warrants into the of recent end with quarter build are diluted a this longer to bond green results completed our to we as which this adjusted ASU million, no need II, were use treatment were earn-outs in money. convertible in outstanding the quarter million longer $X.X as any converted for notes. early are full fully This if diluted Stage to it note calc, whether XXX.X out in outstanding, share the face but And million. that roughly the our shares shares show by the converted We notes EPS, convertible will behind were count, $XX value GAAP exchanged and count shares. so Our grew the quarters. diluted I slide money. if in having shares clean is also future likely financials, do value just remove number. of now at XXX.X steady actually in converted on enterprise of using

Shenghe million. in balance paid we Lastly, just the offtake is down quarter advances million approximately now with $XX.X our the by under $XX

sheet we file ability our our down and our to are for exceptionally balance of strengthening our III and environment. balance obligation a to costs, advances offtake story Importantly, in of timeline classified picture result pay will good we the offtake more sheet is the on see believe owing preserving That's we've Obviously, performance, wrapping cash the and up, entire expected strong full balance to to next a execution In of the when a subject flow as Stage including thus production accelerating that efficiency current beyond. and the and sheet. favorable the on months REO balance XX paydown advances future, and and XX-Q the meet we over headlines pricing. our pricing the you'll that

it I'll Now, back Jim. turn to

you Mountain Ryan. Pass. concentrate project II at separating earth production that Thanks, our to Most [ph] today's oxide rare the beyond our of to optimization is profitable move know site Stage of

Stage to of to all is on we've nearly to provide since China. chain earth rare separation as financial supply II expected the global profile upside significant critical done success and security about industry is also XX% is Our spoken prior calls. our today in

of top photos I Crystallizer for it actually XX, components but the our it the being does see Let's some shows key foundation delivered and to one turn crystallizer being installed. being equipment Salt water our treatment. a plant. to progress, below of laid the including looks of Slide like to the rebar that the recent of key The left space capsule, guess

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rest press structure is our steel facility. picture cranes, new by the existing our see concentrate for of gone surrounded can two and You the shown filter up, has is the

to on Moving Slide XX.

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the NdPr of much will spec the majority high-value to on levels us much lower the with allowing at of higher to the also remaining moving we're processes While improved production pass operate cost cerium, get isolate first of a environmental profile, while NdPr.

of issues. shipping that with Like our along are ever. of have stress year. labor, In very progress all semiconductors accomplishing time. We Delta things therefore, talking focused press as particularly and are we costs other from Improvements proud is a COVID the seen find our among and Crystallizer what and are the filtration, season, you these impurity in for Stage hearing challenges starting full restaurants materials at removal previous more a companies am reports to start underway other of leaching well. roasting about the earning and see is for II. steel backlogs. demonstrated. chains, is are like have is shape. labor attention, such we this advancing separation foundation and the and/or challenging slide hotels, processes continue to The make anticipated Structures picture supply reemergence struggling later huge number follow shortages happening take Already are I to about and construction have bottlenecks addition, of companies on than across installations Vertical we to the team as resin stores to Salt staff nice our the the drawing or many

to some project vendors Our in are subcontractors, product is and is months managing who be still these in coming as And design reality. good We've Many are actually utilized construction also is and Mountain economy materials, to supply variables general facing. is team a deployed kinds work manage of the final efforts the closely. industrial a Pass challenges had the of window construction in are as more through and workers Engineering making around resources. ours at short expected struggling is large some lot staffing friction a our the still accelerate.

that but generated. then II. we expect cash some why flow cash uplift on bullish work the free track. business potential to we today's our to makes optimistic global to about is foil tons I not II we I investment put as like As shock. towards with at increasing X,XXX already of of pale an taking is NdPr shock flow and project our a very we shape our mission. ultimately situation argue shock to importance Stage the of you completion, have economic between are schedule visibly the significant come and already on that up our costs in Moreover, may I XXXX To and supply in we complete history prospects, once though, me we make as cost we the to issues months. excess reverberating unexpected incremental the decisions enhances our global Overall further return levels the believe in the color and current orders analogize goal you're course encourage main Mountain would metric achieve up. And all Pass for and production COVID Stage Potential would of comparison environment years, significant confirms expected can study the takeaway end if remains of interested, change XXXX

the around self-fulfilling COVID of the happened be economy. already supply weary the year across geopolitical shifted. with transitory fear to I Rising or over an the The projected projected and and a dollars in course demand space, that new people fact, next OEMs the next further investments, no that prophecy respect quantities on and for In many for mentioned instead event if things months billions short-lived are across that coming backdrop shocks stretch you in psychology the chain and some that might in prices an bill some few these became implied the years. environment assumes in do if the quite hundreds alone infrastructure some I supply shortages then believe chain and supply EVs to happen limited time. demand previously legacy the of prices in by incremental security. In to shock What of expected of math here we from has [ph] on stay investment acceleration believe yet material backlogs of of

or prices In make that By global than that fact, market strategic the name at In of gain other new in ones, bold mean will revolution. many and a at fail access realized the the do in valuable on too a them. auto that is I'll world, household point set existential fourth I one that industrial as assets this will our means the believe mean one kind bailout small least late went years, they way regime critical I opportunity and ever. be prediction. up see our of more who ones. to are the to failure as supply to not the chain five need some a major we due I next well OEM material.

to the the earth chain we rare restore to to here. in half on United our manufacture achieve full States, magnets of the supply the to Moving mission need bottom permanent slide,

onsite separation often heavy cost the earth and the keep added as derived calls temperatures. to States. Stage have key will II needed ability as small our elements United rare higher operating and goods by design of Some earths. is heavy in most terbium ingredient a in elements our in at the for also of NdPr been for of the magnet but dysprosium be are fully producing The higher meaningfully of primary always magnets, concentrate like the enhances rare but volumes they from separating rare current III the earths, magnifies produce far magnets Stage of heavies heavy ambitions

We rare XX in and piloting we months team leadership with been those significant see progress. ourselves, history. been to believe were and from has XX separating funding Department we rare as senior earths maturity commercial our demonstrated during a Defense, also yielded the earth to last of last has disclosed, The the Over analyze we positive feasibility Pass' the part at year-plus previously Mountain from heavy happy the host doing DoD of work results R&D heavy have the piloting which done to week project.

a return opportunity are capital. return such, while that there strategic mission, generating so heavy attractive to As be our Mountain rare earths gaining to an is at also confidence high Pass. we Doing separate would on

But some with progress a with expect details to Stage the news our on you as that with me We share more on Slide in you segue, exciting share future. XX. III let

come the previously, Many magnet have to potential we to of vein and conversations and/or environmentally customers six faster? focused of were can about offering. western last nine help talked on interest making for supply the partners get chain we've clearly These importantly getting in begun potential quarter's are months. to from pursuing driver an us magnetics. partners bond As and magnet last these a sustainable the you how really to important over green also accelerate has These customers discussions

manufacturing magnet the here to before making expect Therefore, we the to States, moving the share the are team. dedicated been alloy, hiring diverse and full metal, busy are the is announce accelerate an all facility motivated times building confidence are a expertise III the engineering location of key with and timetable. United the pleased talent am team project. We've magnet alloy extraordinary we in I gives forward The progress have and and that building we manufacturing, metal behind been and operations in to us whom with Stage year-end. at We scenes and and science

jurisdictions several We are engaged doing and detailed a work the when on site. with choosing potential are project

our relative Mountain of a in share at and decades structure to how as Magnet nature. States. modest and of nearly to it commercial XXXX. in racing of it our say, supply resource rare and had facility the consequence. for vertically details to Pass in capital and we We've magnet will chain the at chain be be the volumes initial relocated the be two are last our void achieve concrete and vision of cost and it as ceased scale are the and quickly We And geopolitical fill expect economics our of facility to about a taking later last high to Needless China first And facility the we timing, production excited the and piece strategic possible. relative scalable be will plan earth ROI. scaled this the the that to while The the step we business, first modest around very producer scale we will a integrated operations to Our are thinking enormous domestic United date. towards supply of to to restoring will be full

Stage Slide execution our is bottom strong, landscape. on nicely continues, to sales through is pricing driving demand and to Stage through up So flowing sum a line. challenging global progressing it remains which XX. I both NdPr II construction for

now and earlier than is us working Everyone profitably exceed is shows much a increased take in separating can shape is employees, XXX. giving confidence would we I now on results. our Pass. at taking it to piloting heavy Mountain we Our Stage moment hard And do to thank really originally anticipated. like rare III our earths this

United uniquely the With earth the work. for I we Western With champion full would that, of great proud that, and the and the to to sustainability the Operator? rare up to keep open restore a positioned States be revolution. questions. to let's Let's electrification lines supply chain are like reiterate are

you, of gentlemen. [Operator from Instructions] Our question David Deckelbaum today comes Thank first Cowen.

Your line ahead. Please is go open.

Thank questions taking you, afternoon. my and this thanks, Jim for

Hey, are you How Sure. David. doing?

there. Hi

basket have couple in of like obviously, terms what yield fair you me, a looks your was earth had for realization quarter one, of It basket. a inordinately of to high what NdPr NdPr. Or high, your driving driven a recently typical just you say in higher that would seen received the that the quarter? this strength price just sales that? we've So such would price rare Is this be from and

don't that? why take Ryan, you

say Yes, we're concentrate so in the ore Really sure. distribution a selling concentrate the NdPr what demand tends basket would supply producing you that elemental NdPr in there. difference obviously, no line with to example. and data perfectly body, with have discrete and that as aligned occasionally drivers and yield, in not Hey, are David. no an change see the market consistent I in for

obviously given the it opinion, our product. supply proportion In we that of represent. the very so just, And inordinate shows it demand very, strong for our

driver so do our so here products mix QX. pricing the That's closely really while mimic do to and higher movements observe with nothing very you amount that of pricing to tend to And can sold. the having of with does the could some tends NdPr of in lag, the which explain in some

that's selling we're get give and to quickly as by David, product. up an as revenue rushing why Yes, certainly done possible. Because II we Stage intermediate

margin that that, uplift Understand Absolutely. potential. Yes.

on Just ask particularly outlining rare somebody that the this be the announce just means there But year. others Stage some some around you you of the let said that Stage just - I'm III, curious around of ambitions II. III. I that and I'll look operations in location would desires facility. some else Stage or to the thanks guess of the refine potential the Biden Administration's facility at take around for housing buy that and as secure initiatives you chain I'm just build of could earths And still here. curious potentially supply the or to form that JV then

something would qualifying you financing help or be III Stage some that additional grants think for you to If that? government like

you the to getting of White a all XX% all order about Sure. day coverage XXXX. the of Well, EVs most the the automakers automakers big saw big talking the or House today so lot out I'm by and with sure executive of

- that I you can you semiconductors. all everything actually chain, with You happened in behind the that imagine of can given big can is an particularly that's a the think that also season. see push scenes, earning with supply And it see there

If you Tesla of example, some it look for calls out. and out some others it the called of called the at

much that of this and to fourth revolution, to will come. industrial transformation. it they're think supply heard as grants, If sort support can't do need think we'll and see what that produce. to there the I leaders of or sure exact a that something. here you missing not What that be investment how out one And I of it's of DC. benefits takes - you comes or on see things what see it this is as do have But We heard form both is investment and what we clamoring have that and in needs see will various who heard sides Because make comments we could people to the credits all a of and important one or take, do - shape that a of the scale aisle. coming way other knows, yet if upstream. or is think far of as means the is And obviously - to the the - needs you've that supply we've from sides still do total a interesting hear but you're what of chain, again form infrastructure and there scenes, to make piece the my the investment. builds math this lot unknown, obviously you me about when say and be We how we're we we'll shape expect I final start just going lot of investment is there behind it this chain some a

the responses guys. for Thanks Absolutely.

Sure. Yes.

Of course

very you Thank much.

next your is De Alba, today please from line open, question comes continue. Morgan Carlos Our Stanley,

doing? are Hello, how you Jim,

Hello, Carlos.

strong very good Hey, results congratulations.

Thank you. Thank you.

project So the delays just the you to you Stage to still seems or what on maybe be fair sort but are a balance magnitude - your may that to time. go the hinting schedule. that up of it potentially to CapEx a there of have to make up if your on under II, could and potential is strong Is sheet, given it increase there the trade-off, assume sort you complete early say too CapEx would had that of it some

produce So XX? a capacity around you can use full

like statement made around Well, the statements the certainly - project, world. from in time is a We humans the we're the them. And things and sort think scheduling certainly trade-off, I of a these cells just building there's we've about you heard experienced happening I I newspaper cost. really think that. made speak we see any the of you there I we you're and all And reading

up come that job out we've done it's are that and in all think things that these labor, really it's I things There there. of the whether a whether things great vendors. managing disrupted

what's of the run because job rate make so we hard in And target. reiterated we're so to lot - we work and we're sure around lot don't this know get do we make do of really with But all know it's again labor as you to we we're that headed our something what our things. the the working. corner focused and see confidence to a can we XXXX And exciting just continue level that we specific there situation out about to want the progress we're focused is obviously these done on. we Delta that Carlos, far and - there's want want and from we very just as that with on, a to photos that It's you have very again putting people to

to just we years, but thinking about head we these my know how and coming realistic so things. of about hopefully and obviously months around it, the don't unfold out that the And world given be in we about may don't we see views - really just feel obviously what we good want

on sooner that getting resin to vendor give a I'll trying Carlos, that and so a get a with those things give the small one at you to if had kinds us and you know - a get basically we wanted can't buy So focus delay there now, to resin, you example of Defense we're managing. it. were is that And something out hard get to thing we able Production if you're right are

to And things so us DoD hopefully will that. help will obviously like we able with be -

also we're and the to just see see. what that continue we really of tackling feel we But job do - good kind we'll done. this to so get And we blocking you

to be So careful. we're just trying

have you just of that XXX% able the reduce for at longer? quarter. cost of sense. sequence How be impact you in given in Do expect makes enough. quarter given quarter last you a terms without or the second did in in inventory or little downtime also of may And shipping experienced had accumulation terms fair and And you that lower third terms shipments to much in the maintenance. quarter, producing REO you then perhaps the that of third you're No that already That take been maintenance in the bit to the experiencing would you you cost? that much volumes and achieve How of your that the

you that? Ryan, why take don't

operating about Sure. hinted I'd way the Carlos, you think produce at, will drive and REO view - of the the hour, I efficiency of this think say business per is production. we our right, which

point were shut higher per number. down growth was. So that Jim, of production even to think remarks without XX% would our number his your of year-over-year number in if the than out the we hour we been called production it have prepared I producing

inventory. production suffice on say, variety shut the fact so efficiency goods production the not an to goods given was cost has that cost it you're But to didn't all then get take And flowed absolutely on for on that have we're the reported the incremental The And into has clearly and may would down. the a to shut talking reasons. we through inventory more impact so of not And finished in QX in have extent significantly impact, time inventory specifics here we an then about going number, that the higher. our it if impact downs finished number much

build, mentioned, outbound on we've matter It X,XXX, but XX,XXX it's bookings chips. are imply shipments a of purely the just securing the some does those and versus lumpy As

anything not it's we've to than shipping very that we product But So in the in out further more filings had moving normally of situation, to. call out out extent the luck good the and difficult ordinary our makes need be. would called it certainly a our past the COVID bit we've

future don't And unique mentioned that many anything as there call in that lumpiness times nothing structure the the just and purely think keep and have could timing is before it's so sales I we've a impact further. contracts the in be given to mind, we out possible. But

All right.

announcement ahead will implications the basically for Okay. the go with what is question that me What the III be probably of your are the of last Stage anyone And then to than on earlier regarding implications agreement? expected. Shenghe

the the - be once Implications will far pretty said, paid of as offtake around that soon remember of it's it's around million. $XX - as Ryan the what down end as as quarter

it's be down. We year. be of to that expect paid our to in as sort now that And you within short-term, down we the said, paid expect

they rights any So I a because we're I that have that again or think don't any - we don't product they to gone. And anywhere want, distribution like really sell be impact that. that certainly party, there's stress no will would there free anything special have

mission is as our really is - stated. no to going impact there clearly we've So proceed with we're there

as remain they And enough. would Fair shareholders, right? potentially

Apple appreciate they're we're questions Boeing public our working Tesla but we I our Well, or we're all for to buy know to if GM them, - and for the don't company. obviously or going shareholders mean, a I next. going shareholders. or we're

are. they whoever So

you much. Thank very enough, luck. Fair Good

Yes.

Thank you very much.

of Tyler from continue. comes question next Please Langton JPMorgan. Our

thanks. good Hey, afternoon,

of Just sort the think and you CapEx, a on us, much perspective. million profile of how little is could that? I could rough kind a a remind if of of a the that left II, in of much over be for sort maybe question sense what follow-up is walked maybe $XXX for on spent you of is how then do the be CapEx from to separate have kind of the price also a And everywhere Stage else

haven't want, a that it of that. one I'll and you you you of For Ryan, I'll and to cover then the you lot do up. on heavy, which our - I can Why that, broken do - heavies to give can if we best finish don't

for million the so Yes $XXX Tyler capital optimization estimate Sure. project. of growth original Stage specific our II on was

Power $XX As capital of and projects initiatives. plant several we the is make that including growth and other we million but in CapEx, re-commissioning the filings we up other some chunkier our our all combined spend recall results of a not little called some of out QX and growth that spent of had have that Stage II, that over of Heat

are that Stage out other Stage projects ongoing pull for Obviously, assume preparation that there II. So, II. on-site I of that kind that's projects not and growth would all are in

business. we're good we incremental I'd number of managing to opportunities heavies obviously to What short-term is. for the on and a the and still not sort of there come all - potential Pass managing obviously, high whatever say long-term original So not CapEx are headline the that number. is return this this on ways success a on go project on what of We're is it for

going to example perfect to along. that's through be bet to in And the go project So, it's high enhance to I one they're we've little here. we keep that Jim that that or safe modeling out think know, a other as return next But mind as that's to heavies opportunities thing disclosed. I that. really think to CapEx I as [ph] bit don't if you talk anything have all on you think the Michael over

No.

sums investments that at of think make and return that down up, and think thing and I able can what Stage generate to I cash the these we've just flow generate still a high I pay been that recognizing that back to cash on already go still it X, might impressive - all accomplished I and capital operationally, achieve debt really business. uplift - it's have, we for we we've of Slide would I flow just free power and obviously significant the in the look

obviously supply so to way we we've get all certainly mission we made that to full the the chain. - clear complete And a have

we're to making ultimately - that is but And on to our so have for we're with we're sure a think that a that's we return investments also component I are a in do. and are job what our shareholders fast and magnets component recognition Because very as work high certainly here make these can going ultimately as capital. that and we

We are a public company.

some I whatever, our to so best say to we're of kind best going of to with that convey to the that do on come or to heavy out think we we go-forward just economics as a basis. extent suffices thing come it as kind We'll you And next. with the might can

incremental So managing I'm are that have return to we that - a dollars dollars invest sure as capital. on we that high not those making

about it. we how that's And so think

of in specifics, and Okay. helpful. That's sort Great. And sort expressing your finding mean, like just more are I of I can't supply long-term chain then, but many of supply EV I the sort customers or get kind interest guess you potential too customers into of agreements.

sort any Just there of helpful? color could be you will provide

really all exciting for think transformation important. say drones And that as not dialog standard say it of things of all the would there there other I industrial is is, that and there it's things. certainly part just we've turbines, EVs, magnetics had with electrification out that variety are this so parties right. - wind And these as it's wouldn't but Well, me broad, of and also a you've you Yes. heard items is of of are is intensely,

So is of say customers we pretty are that with a I out. and industrial there lot would things engage figuring

realize lot think a semiconductor look to really clear is there to It's issue we're ways. security, and only Again - be I I the there'll that will do It's I word numbers a about. here, of be and of of that a supply make there of chain urgency of that going two or urgency and to urgency some talking more existential. believe I I've excitement that created chain then made companies last think to start a is people that right supply greater the think lot trying when the think but that the obviously, more existential lot I demand. then with increase certainly as is think sure sense what at to

deals how that it. they're who don't to us someone figure regret us, think like down those with to be I out So going there'll lock or

we're realizing also so And conversations position. those of we're and all that strategic in having an outstanding

on And obviously last make deal, make we'll lot the options But continue the right thing to moving but we forward believe are certainly have is want to growth again, the a right I for can we will and being the do table patient something. so ultimately pretty make of bad want a if to ourselves, be we it until the And are we prospects do patient deal. means what deal exciting.

great. for that's me. Okay, much, so Thanks it

much. very you Thank

of Summerville question Our the is Davidson. Matt continue. your D.A for final open. is Instructions] from moment [Operator line Matt, Please

be hour. Stage tons down a reagents I taken per it just clear rates. about the move getting increase given that you're you you of of in involving REO feed And like with here want to XX% not slowed such I the quick just ones. function sounds be metric has couple a may you talked as Thanks, process output year-over-year fine-tuned that higher growth sort permanent step

put can there? bit a me that help all you little just out together and So

Sure, Michael, in to want operations? do and chime talk you

how we quite representative to the stable function pleased throughput that increase don't process get level hope I'd consistently step we year. Sure. that increase I the filtration that we've for the XX% as say so the a say quarter continue years, and ongoing, recovery I to see mineral growth. last we stable to working we're try last necessarily gone of of question. see we'll is the think But is process. think the Yes, been has full And then the for to with would over our thanks I the and three that,

cost per one out model into incremental production going ahead incremental folks $XXX out onboarding the be of from Ryan, you think here? thinking the is wave there hiring pointed slides And about as then from II, cost of per another we going time of should we I production Stage forward

right commissioning. obviously, give I'd one good to your again that Certainly, we question, going year. decisions this year on when a for sense long-term It's term ahead continue specific we for candidates right the change, expect rest make make to don't the find bring But wouldn't I of we're obviously guidance. of to for certain on step using the the significantly rest roles say I the of

get suite full that's it. to folks kind some, and Stage up could a year of story, different talk so but running of can I is about step-change. Obviously, II, we transition, how you up we So a don't onboard bit think we and XXXX tick a expect But more as when ready certainly about of see closer. to get get that's of a XXXX I

guys. Thanks Great.

line. questions Thank Instructions] you. further the We on [Operator have no

I'll So to the hand team. back

forward Again, chatting productive keep everyone. you, thank you we And we we are and Well, quarter proud very at this was with really right. it. a will look all to All soon.

see and you thank So, soon. you

Thanks, everyone.

today's joining now call call. you for lines. all may your and now you The concluded, is Thank conference disconnect